NEEDS OF TEA GROWERS FOR PARTICIPATING IN TEA PRODUCTION INSURANCE: A CASE STUDY IN PHU THO PROVINCE, VIETNAM

Abstract

The research has evaluated the situation of tea production of tea growers in PhuTho Province, Vietnam. Average tea plantation area among the largest group ofhouseholds is 0.61 ha. In production, the types of risks that tea growers encounterinclude: unfavorable weather (33.4%), diseases (13.2%), insects and worms(2.3%), capital (0.3%) and price which is the most major risk (50.8%). The surveyof 1,000 tea growers identified that 46.7% of the households are in need toparticipate in tea production insurance. The average willingness to pay wasestimated to be 2,407.07 (thousand VND/ha/year).If the agricultural program issuccessfully implemented in the province, it is estimated to have a total agriculturalinsurance fund of 34-35 billion VND/year. The survey results show that gender,education level, tea growing area and location are factors that affect the level ofwillingness to pay for agricultural insurance for tea trees. There are four solutionswhich are proposed to enhance the participation of tea growers in agriculturalinsurance for tea: (1) Development of an insurance product for the production offresh tea leaves for easier access from farmers; (2) Active communication onagricultural insurance policy to local authorities, farmers' union, agriculturalexpansion stations and especially the farmers; (3) Close collaboration betweenlocal authorities and enterprises in the review on current mechanisms and policiesto timely propose adjustments and supplements to meet the needs of farmers onagricultural insurance; (4) Strengthening coordination between the State, insurancecompanies, credit and financial institutions and farmers.